The government is pushing for reform of the child allowance, with the relevant proposal set to be approved today by the Council of Ministers and submitted to the House of Representatives with the aim of implementing it as of January 1, 2027, as stated by Deputy Minister of Social Welfare Tina Pavlou following the Cabinet meeting at the Presidential Palace.
As she noted, the reform provides for increases in benefits and an expansion of the income thresholds for eligibility, while its fiscal cost amounts to €12.5 million. She noted that once the reform is approved by the House of Representatives, 17,000 families and 23,500 children will benefit.
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According to Ms. Pavlou, the reform begins with low-income families, with a 10% increase in the allowance for families with an income of up to €22,000 and a 5% increase for families with an income of up to €44,000.
For families with three children, the Deputy Minister of Welfare stated that the income threshold is being raised to €90,000, while for families with four children it is increasing from €69,000 to €100,000.
“Most importantly, however, we have eliminated the long-standing distortion that abruptly excluded families from the program, who, due to a small increase in income, were unable to benefit,” noted Ms. Pavlou.
According to Ms. Pavlou, this will no longer apply to any category, as the income thresholds are being broadened so that small increases in income do not deprive families of the benefits to which they are entitled.
The Deputy Minister emphasized that “no benefit policy is effective unless it is accompanied by services.”
“Today we can say that, as a result of this reform, 2,000 families will be able to benefit from a school-related subsidy. And 2,800 children will be able to benefit from the subsidy and meal program related to the education system,” she explained.
“This is the only way we can achieve results—by combining services with the allowance,” noted the Deputy Minister.
“President Nikos Christodoulides and the government continue to prioritize the family. This reform has a cost of 12.5 million,” said Ms. Pavlou.
“We will continue to stand by families, because it is extremely important for every person to feel supported,” she added.
As Ms. Pavlou noted, the reform will take effect on January 1, 2027, “provided, of course, that it is passed by the House of Representatives.”
She noted that the next step is for the House to approve the reform so that families can soon benefit from it.
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Source: CNA
